Amazon Offers Calif. 7K Jobs to Put Sales Tax Law on Hold; Dems, Retailers Refuse
September 2, 2011 9:48 AM
comment(s) - last by
Senate President Pro Tem Darrell Steinberg is even going as far as gaining support for a bill that prevents Amazon from bringing a referendum to unravel the present sales tax law
Amazon CEO Jeff Bezos
If state leaders can put a hold on the new law until 2014, Amazon will drop its effort to repeal it and would hire 7,000 new employees in California
Amazon has been fighting a tax-related battle for quite some time now. In the past, state's like
, Illinois and Colorado have pressured the online retailer to collect taxes in order to make up for state budget shortfalls, but Amazon refused and would simply pack its bags to move on to another state.
recently joined the list of states who've pressured Amazon to collect. In fact, Governor Jerry Brown signed a bill in June that would require websites that forward shoppers to Amazon to collect sales tax in California. The law, which took effect July 1 and is expected to generate $200 million in revenue, angered Amazon to the point that it
asked California voters to repeal the law
Now, Amazon has
a new proposition
for the state of California that was discussed in a meeting Tuesday with leaders of the California Retailers Association and those in the office state Senate Republican Bob Dutton in Sacramento: If state leaders can put a hold on the new law until 2014, Amazon will drop its effort to repeal it and would hire 7,000 new employees in California.
While the hiring spree could be an appealing option for the state, since California's unemployment rate was at 12 percent in July and is expected to remain in the double-digits through 2012, Democrats are rejecting Amazon's proposal due to budget-related woes.
Earlier this year, state leaders needed to close a $10 billion shortfall. This gap was closed in June after deep spending cuts in previous budget cycles, but Democrats are backing the new law due to the fact that it has the support of local governments, public employees and small and large businesses.
like Best Buy and Walmart have been complaining about "unfair competition" with Amazon since they have to collect taxes and Amazon doesn't. The California Retailers Association quickly rejected Amazon's proposal.
"Our people came back and said this isn't legitimate," said Bill Dombrowski, president of the California Retailers Association. "It's unacceptable."
As for local governments and public employees, their "ranks are being thinned" due to a weak local revenue and overall state.
Senate President Pro Tem Darrell Steinberg is even going as far as gaining support for a bill that prevents Amazon from bringing a referendum to unravel the present sales tax law. Amazon spokespeople said they believe they'll have enough voter signatures by September 27 to qualify its referendum for next year's ballot.
In addition, Steinberg and other Democrats will create California jobs without the help of Amazon by proposing tax breaks for businesses, creating an economic development office and easing regulation.
This article is over a month old, voting and posting comments is disabled
9/3/2011 12:54:44 AM
This isn't about being "fair" to local business, it's about making the state more money. If they wanted to be "fair", they would cut local state taxes to boost revenue and consumerism, NOT try to hammer their own taxpayers and force them to pay taxes on Internet sales.
How does taxing one sales medium make it more "fair" for the other? Think about it. Are brick and mortar stores going to benefit from Amazon sales taxes? They sure as hell aren't going to be seeing any of that money.
9/3/2011 3:38:00 PM
Haha. 'If they wanted to be 'fair' they would conform to my ideology!'
Fairness has to do with a level playing field for all participants, it has nothing to do with whether you are raising or lowering taxes to do it.
Current tax structure incentivizes consumers to shop online for no good reason. That should end, and anyone looking at this situation rationally knows it isn't going to end through the abolition of sales tax. Considering that sales taxes are a consumption based tax, I would think that conservatives would be a big fan of revenue generation in this way. Not only are we removing a market distortion, but we're regressively taxing to do it!
Oh wait, it's something Democrats support and they aren't on your political sports team.
"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
Amazon Asks California Voters to Repeal New Sales Tax Law
July 12, 2011, 1:18 PM
New Online Sales Tax Bill Prompts Amazon to Cut Ties with California Sales Affiliates
June 30, 2011, 10:47 AM
Walmart, Best Buy Pressure Amazon to Collect Sales Taxes
March 21, 2011, 9:44 AM
Amazon to Cease Operations in Texas over Tax Collection; State Gov. Looks to Change Retailer's Mind
February 14, 2011, 10:09 AM
Russian Hackers Compile List of 10+ Million Stolen Gmail, Yandex, Mailru
September 11, 2014, 11:41 AM
House Minority Leader Pelosi Criticizes FCC's "Fast-Lane" Net Neutrality Plan
September 9, 2014, 4:15 PM
Smarter Than Siri? Cortana Adds Game NFL Game Winner Prediction
September 3, 2014, 4:12 PM
Apple Says Nude Celebrity Photo Dump Wasn’t Result of iCloud, Find My iPhone Breach
September 2, 2014, 3:26 PM
FCC Orders Advertisers to Cut Out That Racket, Turn Down Commercials
August 29, 2014, 12:49 PM
Dropbox Bows to Competitive Pressure, Provides 1TB of Storage for $10/Month
August 27, 2014, 11:17 AM
Most Popular Articles
Apple Announces 4.7" iPhone 6, 5.5" iPhone 6 Plus
September 9, 2014, 1:45 PM
Appalling Negligence: Decade-Old Windows XPe Holes Led to Home Depot Hack
September 8, 2014, 8:58 PM
Apple Announces Its Smartwatch: The $349 Apple Watch
September 9, 2014, 2:09 PM
T-Mobile Launches Un-carrier 7.0, Beefs Up Wi-Fi Calling
September 11, 2014, 2:56 PM
HTC Preps Nexus 9 With Nvidia K1 64-Bit "Denver" SoC, Android L Onboard
September 10, 2014, 10:21 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information